In 1925 Tzvi's half brother Yechezkel Steimatzky opened the second store on Jaffa Road in Jerusalem.
During World War II, a Steimatzky store opened in Baghdad next to the British Army base, and soon after in Cairo, Alexandria, and Damascus.
The Middle Eastern expansion came to a halt with the outbreak of the 1948 Arab–Israeli war and the nationalization of all branches in Beirut, Baghdad, Cairo and Damascus.
It was estimated that the company held a 40% share in the Israeli book retailing market and employed over 700 people worldwide.
In September 2007, Eri Steimatzky announced his retirement from the chain, leaving the company in the hands of Markstone Capital.
Early 2018, the headquarters and logistical center of Steimatzky moved from Kiryat Aryeh in Petach Tikva to the Lev HaAretz industrial area in Kafr Qasim.
Since 2020, the website of Steimatzky sells a wide range of consumer products including shoes, perfumes, home appliances, and electronics.